How to Save a Car After a Cosigner Dies

Co-signers for automobile loans serve an important role. Co-signers are usually relatives or close friends and have outstanding credit scores. Credit scores are a three-digit number ranging from 350 to 850, with many co-signers having scores of 720 or higher. Co-signers are sometimes necessary for people who cannot gain credit approval on their own because of poor credit. Bankrate reports that co-signing for someone is a risky move because the bank will expect the co-signer to take full responsibility for the loan if the purchaser defaults on the agreement.

Instructions

1

Continue making on-time payments. The co-signer's family is not required to notify the bank about the death, and the death may it may not become an issue if payments are made as agreed.

2

Contact the bank to report the death of the co-signer as an alternative. This is the best option for avoiding problems later if the bank somehow finds out about the co-signer's death.

3

Provide the bank with updated financial information to show that you can afford the payments without a co-signer. The bank will check your credit report and review your payment history on the car. The bank will drop the co-signer requirement if you meet credit standards.

4

Pay off the balance in cash to save the car. Or pay the car off using a loan from another bank or credit union.